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ehidna [41]
3 years ago
12

In 2011, Edwin Ryan bought 100 shares of a listed stock for $5,000. In June 2014, when the stock’s fair market value was $7,000,

Edwin gave this stock to his sister, Lynn. No gift tax was paid. Lynn died in October 2014, bequeathing this stock to Edwin, when the stock’s fair market value was $9,000. Lynn’s executor did not elect the alternate valuation. What is Edwin’s basis for this stock after he inherits it from Lynn’s estate?
a.$0
b.$5,000
c.$7,000
d.$9,000
Business
1 answer:
lara [203]3 years ago
4 0

Answer:

B) $5,000

Explanation:

Under Section 1014 (a) the basis of any property acquired by a decedent (Lynn) through a gift within 1 year of death and passed back to the donor (Edwin) due to the decedent's death, will be adjusted to the basis immediately prior to the death.

In other words, since Lynn died within 1 year of receiving Edwin's gift, Edwin's basis will be the same as Lynn's basis.

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3 0
3 years ago
Which of the following statements regarding life insurance needs is / are correct? 1. The human life value approach looks forwar
Tresset [83]

Answer:

The human life value approach looks forward for information.

and

The capitalization of income approach looks at right now only for information.

Explanation:

A life insurance is a form of agreement entered into by an individual and an insurance firm whereby some amount is to be paid to the next of kin of the individual under the insurance. It can also be in the form of payment of bills in the case of the illness of the individual under insurance.

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7 0
3 years ago
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serg [7]

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The coefficients in a log-log model represent the elasticity of your dependent variable with respect to your independent variable. In other words, the coefficient in a log-log demand model is the estimated percent change in Q_{xd} with respect to a percentage change in the independent variables like P_{x}, P_{y}, M, A_{x}, etc.

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5 0
3 years ago
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slamgirl [31]
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Lerok [7]

Answer:

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Explanation: Took the practice test on edge and this was the sample response. ^-^

3 0
3 years ago
Read 2 more answers
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